There are a lot of quality options for investors to choose from on the Australian share market. Two that analysts are particularly positive on are listed below.
Here's why analysts rate these ASX shares as buys:
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Rio Tinto Limited (ASX: RIO)
The first highly rated ASX share for investors to look at this month is this mining giant.
It could be a top option due to its attractive valuation, production growth outlook, its exposure to aluminium, and strong free cash flow generation. The latter is expected to underpin a double digit dividend yield in FY 2022 according to the team at Goldman Sachs.
It is partly for this reason that the broker currently has a buy rating and $121.00 price target on its shares.
Goldman is also very positive on its aluminium business. It commented: "In addition to copper production growth, Rio has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions of $."
Webjet Limited (ASX: WEB)
Another ASX share that is highly rated right now is this online travel agent. Especially given recent weakness in the Webjet share price, which leaves it trading far closer to its 52-week low than its 52-week high.
The team at Morgans is very positive on the company's outlook in a post-COVID world. This is thanks to its cost reductions and bold market share targets. The broker recently upgraded Webjet's shares to an add rating with a $6.60 price target.
Morgans commented: "WEB is targeting to return to pre-COVID booking levels in the 2H23.Management continues to maintain its aspirational market share targets and wants to reduce the company's cost base by 20% when it returns to scale. This means that WEB should be materially more profitable post COVID."
